I'll resist the urge to call you retarded and spell this out for you.
When the demand for a commodity is high relative to supply, that creates high prices relative to the actual worth of that commodity.
That price differential provides actors with an incentive to enter the market and make profit. But as supply increases, prices drop, until they are a fair reflection of the value of said commodity.
Depending on the friction within the market, it may take seconds (stocks, forex), or years (real estate) for supply to increase. But profit seekers will continue to enter the market until equilibrium is reached.
Historically, real estate has appreciated at 3% to 4% per annum. In the past year, real estate went up 18%. That is tied to abnormal demand, which can and most likely will get alleviated as more supply enters the market. There is no single developer who will indefinitely restrict supply to keep prices up; the market is fragmented and will expand as much as land and material will allow.
So, dumb negro (couldn't resist in the end), buy now if you want to. But there is no evidence that house prices will continue to appreciate at the rate we have seen over the past year. Mocking caution in this kind of market is something a smart dumb negro would do.
